Categories
Economy

Making Hay With Used-Car Fever!

Contributing Author: John Stephens Executive Vice President EFG Companies
Contributing Author:
John Stephens
Executive Vice President
EFG Companies

Experian’s latest State of Auto Finance Market Report made headlines recently, painting a rosy picture for the used-vehicle market. Overall, pre-owned vehicles accounted for 55.61 percent of all financing in Q2 of 2016. Consumers across all credit tiers are flocking to pre-owned vehicles, with super-prime and prime consumers accounting for 44.95 percent of all pre-owned loans – a 2.6 percent year-over-year increase.

Dealers have ample opportunity to capitalize on this market dynamic with CPO programs and F&I products tailored to the pre-owned market.

Remember, the one hurdle pre-owned vehicles have always had to overcome is vehicle reliability. Even in this current market, you can bet vehicle reliability is still a hot button. In addition, those prime and super-prime consumers are used to another level of sophistication when it comes to customer service and they will expect no less when shopping for pre-owned vehicles. This combination makes strong CPO programs market differentiators.

Categories
2016 Innovator of the Year Competition

EFG Companies and Northwood University Announce Student Competitors and F&I Mentors in 2016 F&I Innovator of the Year Competition

2016 Innovator of the Year AwardStudents compete for $25,000 and the chance to see their F&I product in the market

EFG Companies, the innovator behind the award-winning Hyundai Assurance program, together with Northwood University, today announced the student competitors and F&I mentors participating in the second annual F&I Innovator of the Year competition. Vying for $25,000 in prize money, this year’s 18 contestants hail from Arizona, California, Illinois, Indiana, Michigan, New Jersey, Pennsylvania, and Wisconsin. For more information on the competition, visit http://bit.ly/Inn0v8te

The credit-based competition pits six teams of Northwood’s automotive students to conceptualize and build a new F&I product. Each team is mentored by an F&I director, and the competing teams develop a business case for their new F&I product that incorporates industry research, market viability, and the product’s potential to facilitate F&I product sales in franchise dealerships. The teams will also keep weekly, YouTube video diaries of their progress, challenges and breakthroughs.

“The mentors’ industry experience is invaluable in guiding the competitors on the real-world challenges facing dealerships today,” said John Pappanastos, president and CEO of EFG Companies. “From changing consumer purchasing behaviors, to increased FTC and CFPB compliance oversight, and a call for enhanced transparency, these mentors will impart a wealth of knowledge that spurs innovation among the students.”

The teams and mentors include:

Categories
Dealership Training

Your Personal Investment = Training Dividends

Contributing Author: Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

Today, most dealers in the automotive industry would agree that employee training is critical to business success. However, it can be tempting to simply “check the box” when it comes to employee training, (i.e. a manager simply offloads training to an outside party, schedules the training event, and calls it a day). No goals are set; no metrics are defined for skills development; and, no baseline is given to determine employee growth. Rather, the mindset is, “My staff needed training and they attended training – mission accomplished.”

The problem with this thinking is the lack of accountability on the part of the manager, the trainer, and the employees. If you are going to invest the time, money and energy into training, it’s imperative that you build in a measure of accountability to ensure a return on that investment. This starts with leadership support.

For any training to be truly effective, dealership leadership must fully support the training content and methodology. Remember, all training is not created equal. When engaging with training providers, it’s important that you have the opportunity to review the content, modify it to address specific dealership concerns, and provide final approval. If there are content changes that need to be made to ensure the training aligns with your operation’s processes and business philosophy, then the trainer should confirm with you that their delivery is in line with your dealership’s needs.

It’s also important to remember that everyone learns differently, and every dealership has different training needs and requirements. Ask yourself what you want your team to get from training.